The U.S. this week unveiled new trade and financial restrictions against people and companies across more than 17 countries for helping Russia evade sanctions or for supporting the country’s military, adding nearly 400 to the Treasury Department’s sanctions list and more than 40 to the Commerce Department’s Entity List. Another move by Commerce will tighten existing controls on nearly 50 entities that it said are procuring U.S.-branded microelectronics for Russia.
Exports to China
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.
Western nations imposing export controls against Russia should shift their focus away from microchips and instead prioritize the key raw materials and machine tools that Moscow needs for its artillery, according to a report this month from the U.K-based Royal United Services Institute and Open Source Centre. The report calls for more enforcement against Chinese machine tool suppliers and new, “strict sanctions” against companies shipping materials like chrome ore that Russia uses for its weapons.
China’s Ministry of Commerce criticized a decision by the U.S. earlier this month to sanction two Chinese firms for helping to make drones for Russia (see 2410170011), saying the designations have “no basis in international law and are not authorized by the UN Security Council.” The ministry also said China doesn’t allow its businesses to sell drone parts for use by Russia’s military and has recently strengthened export inspections to stop those shipments.
The leaders of the House Select Committee on China urged the Commerce Department this week to prevent American know-how and investment from supporting the development of China’s photonic semiconductor sector.
While the Biden and Trump administrations both frequently imposed financial sanctions and export controls on China, the Biden administration has made greater use of two key tools: the Treasury Department’s Specially Designated Nationals and Blocked Persons List and the Commerce Department’s Entity List. That's according to a new report by the Center for a New American Security (CNAS).
Chinese government efforts to obscure which firms have public links to the country’s military are making due diligence more complicated, but compliance officers can use several strategies to overcome those challenges, said Colby Potter, a former intelligence official with the State Department.
The Pentagon removed China-based Hesai Technology from its list of Chinese companies that it said have ties to that country’s military but immediately relisted the firm, according to a pair of Federal Register notices published this week.
Taiwan Semiconductor Manufacturing Company recently spoke with Commerce Department about a possible export control issue involving one of its advanced chips, a company spokepserson said. TSMC "proactively communicated with the US Commerce Department regarding the matter," the person said Oct. 23. "We are not aware of TSMC being the subject of any investigation at this time."
Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.